An investor has $1000 initial wealth for investment and he borrows another $1000 at the risk free rate. He then invest the entire total amount of $2000 in the market portfolio. What is his portfolio beta?

An investor has $1000 initial wealth for investment and he borrows another $1000 at the risk free rate. He then invest the entire total amount of $2000 in the market portfolio. What is his portfolio beta?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 4P

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Question

(46).

Subject :- Finance

An investor has $1000 initial wealth for
investment and he borrows another $1000
at the risk free rate. He then invest the
entire total amount of $2000 in the market
portfolio. What is his portfolio beta?

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